New Delhi , Apr 18 : Mahindra Group and Ford Motor Company on Thursday signed an agreement to co-develop a mid-size sports utility vehicle for fast-growing markets in India and other emerging economies.

This follows a strategic alliance between the two companies in September 2017 and an announcement on powertrain sharing and connected car solutions in October 2018.

The compact sports utility vehicle (C-SUV) will have a common Mahindra product platform and powertrain, thus driving engineering and commercial efficiencies.

"Having identified several areas for joint development, both companies will continue to work together to develop products using common product platforms," said M and M's Managing Director Pawan Goenka. "This will reduce product development costs and gain economies of scale," he said.

Jim Farley, President of Ford for New Businesses, Technology and Strategy, said "Ford's technological leadership combined with Mahindra's successful operating model and product prowess will surely help us deliver a vehicle that will meet the expectations of customers in India as well as other emerging markets."

Earlier this fiscal year, the alliance signed an agreement with Mahindra Group to develop andsupply a low-displacement petrol engine for use in Ford's present and future vehicles beginning in 2020.

Mahindra and Ford have also announced joint development of a telematics control unit.

Mahindra owns a majority stake in Ssangyong Motor Company in South Korea and has entered into the shared mobility space with investments in ride-sharing platforms in the United States besides developing products like the GenZe -- the world's first electric connected scooter.

Ford was among the first global automakers to enter India in 1995. It is now one of the largestexporters of cars from the country with manufacturing facilities at Chennai in Tamil Nadu and Sanand in Gujarat.